| kowenicki said: The company does not operate in its own bubble and spending money makes the lenders and investors nervous given the Sony situation. The recent rating reductions are serious and impact the bottom line quite heavily as time passes and can hamper expansion and innovation. If you burn through your cash then where do you get the cash to grow and for R&D? you borrow it. Sony have been heavy borrowers in the last 20 years. Borrowing becomes expensive when your debt is rated one point above junk. |
I think you're pretty much dead on with this one.
It really isn't a matter of trying to keep the consumers happy when you're in the boat Sony is presently in, save for trying to get that killer product that sells. As a publically traded company, they are at the mercy of the people who invested, the lenders who (thanks to the credit downgrade again) will be charging them even more interest without knowing if they're going to see their money back and the like. That can't be nice for Hirai at this point. Just the stress of that situation would probably crush most people.
I think that's why I found the article interesting. It isn't doom and gloom, just a statement of nervousness by people who honestly want to see what Hirai has up his sleeve. Guy needs to be a magician right about now.
